What is the difference between hiring an employee and hiring a business?

Have you been starting to consider that you might need some extra help in your business and it's time to hire your first assistant?

As someone who has had various roles in the Virtual Assistant world since 2017/2018 I always find there is confusion about what hiring a virtual assistant actually means.

There are also a lot of business owners who like to push the boundaries when it comes to hiring a subcontractor.

I have experienced the full range in all of my years.

I have had some clients who are amazing, respectful of boundaries (or offer their own boundaries for you), who respect expertise and rate and who knows how to treat someone in my position.

I have also had some toxic clients who degrade, who only take and never give, who argue the rate, who not just push the boundaries but demand that they be broken, who have no compassion or kindness and who I imagine went and talked smack about me once we parted ways (which I don't really care about. I know who I am and the service I give).

But here's the thing...

A virtual assistant or a subcontractor is not an employee they are a business owner unless they agree to otherwise.

I find a lot of business owners opt to hire a VA because it's easier but then expect the relationship to be just like an employee/boss relationship. 

But you simply can't have the best of both worlds.

You can't opt out of the tough stuff like your employee's taxes, benefits, etc. and still demand to be the boss.

So here is what a subcontract is NOT:

1. Someone you can make demands of

There is a difference between requesting something and demanding something. An employee has to meet the demands of the boss (although I don't think you should make demands of your employees anyway) but with a subcontractor, you need to request.

2. Someone who only works for you

This is one I find gets people confused. Think about it... If you only want to be paying someone a couple hundred dollars a month or even a small hourly wage like $20 an hour and then you only give them 3 hours a week's worth of stuff to do... Do you think you're the only person they're working with? Assuming this leads to asking for tasks to be done last minute or getting upset when they give you a timeframe you think is too long.

3. Someone that will do everything you ask

Some VAs offer a large list of services while others are more niched. But when you enter into a partnership with a VA you agree upon the terms and services ahead of time. I always have a meeting to ask what they're looking for and if they don't know then I'll ask them to create the 3 lists (tasks you hate doing, tasks you would prefer not to do and tasks you love). Then I'll put in the contract the agreed-upon tasks with a note for more general clients that if tasks over and above the agreed-upon services come up a discussion needs to be initiated by the client to request the new services.

Here's what a subcontractor IS:

1. An expert in their field

You hire them because of their expertise in something. They can either do something you can't (like create you a website) or something you can do but they can do it better (like copywriting). But whatever you hire them for, they are the expert in that and should be treated as such.

2. A partner

Instead of a superiority type of relationship like a boss to an employee, a subcontractor is your equal. You both own your businesses. So instead of thinking of them as someone you've hired who works for you think of this relationship as more of a partnership; you work together.

3. Someone you respect

You may think this goes without saying but you'd be surprised. Since a subcontractor or virtual assistant is their own boss, they own their own business the practices and procedures should be respected just like yours. They have a particular rate for their services and while some VAs are willing to barter it is not up to you to decide on the rate. Many VAs also have contracts that support a strong and healthy working relationship and it's important to ensure that it's read and understood. Many times I've had clients argue and say they were confused over something that was clearly laid out in my contract after multiple check in's about questions regarding the contract. A contract should not be signed unless it is fully understood which is the responsibility of the person signing NOT of the person who sent the contract.

 So, the thing is, everyone is different.  Some VAs prefer to sit back and let their clients run the show (I have definitely been there) but then they have a harder time implementing boundaries when they're necessary. That's what I found. I didn't have a strong leg to stand on when something went against my boundaries because I hadn't set any boundaries, to begin with.

As a VA it's important to implement boundaries early and teach your clients what it means to choose to work with another business and not simply an employee.

As a client hiring a VA (I have done this too) it's important to remember that you're partnering with someone who has created a business, procedures and their own structure and that it was important to treat them as such.

Hiring employees versus hiring subcontractors/other business owners both come with their own unique sets of challenges but it's important to remember that clear communication and setting expectations upfront will be important.

If you know that you want tasks to be flexible make sure you share that during your first meeting and the VA is welcome to accept or decline. But you can't hire a copywriter for a copywriting project and then say they have to do things like onboarding/admin without first talking to them and making a request and be okay if they say no. You can bring someone else in.

Another very important to remember is, business owners, raise their rates. Just like employees who get raises, subcontractors get them too. You cannot expect to pay the same rate for 4 years with someone. That is just a natural thing. When they raise their rates you're welcome to have back-and-forth dialogue but don't ask them to do more tasks.

Someone who has worked for you for multiple years will know your business more in-depth, do the regular tasks better and probably also have taught you things. Them getting paid more isn't about them doing more it's about them being a strong asset in your business. They should be paid for this intimate knowledge and their mastery of the skills. Inflation is also important to remember. $500 in 2015 is not the same as $500 in 2025. Increased prices is normal.

Have you hired an employee or worked with a subcontractor? Share your opinion and experiences with both by emailing [email protected].